Financial products have expense loads, declared and undeclared. In this the information age with a little Sherlock Holmes savvy and access to the Internet you should be able to uncover what the manufacturer should disclose. But, for the most part, it’s not disclosed. Mutual funds and ETFs (Electronically Traded Funds) have their expense ratio disclosed in their prospectus, but other fund related costs are embedded in other documents and not generally disseminated to the fund owner.  The average expense ratio for small to large cap funds is around 1.30%, foreign stock funds around 1.50%, and bond funds near .90%.  The average Registered Investment Advisor, charges an annual fee around 1.03%. Based on public information disclosed in the prospectus and the RIA ADV form, most investors think they’re paying under 2.5% all in. But in reality there’s an average of an additional 1.33% listed in the statement of additional information which is available to anyone online, but not delivered as part of the fund cost. These transactional costs are not cheap and most fund owners are not aware of them, and shockingly neither are most of the registered representatives and RIAs that sell them. Cash Drag is another additional cost in   Read more…